Key Person Insurance
Protect your business with key person insurance
Key person insurance is crucial for safeguarding your business's future when the unexpected happens. It provides financial protection for your company when a critical team member passes away or is unable to work. You may also see it called key man insurance: it's the same product.
- We search every UK insurer
- No fees, ever: we're paid by the insurer, not you
- FCA authorised and regulated (985058)
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The quick version
Key Person Insurance in a minute
- What it is: Business insurance that pays your company a lump sum if a key director or employee dies, or is seriously ill
- Who it's for: Any UK business that depends on one or more critical individuals to generate revenue or keep operating
- What it covers: Lost revenue, recruitment costs, loan repayments, and business stabilisation
- How to get it: One call with our team - we search every UK insurer and present your options
How much does key person insurance cost?
A 40-year-old company director could be covered by a key person policy for £250,000 over 10 years for around £11.20 a month, or about £134 a year.
| Age | £250,000 cover, 10 years |
|---|---|
| 30 | £5.97 |
| 35 | £8.01 |
| 40 | £11.20 |
| 45 | £15.50 |
| 50 | £25.11 |
| 55 | £39.37 |
| 60 | £68.86 |
Example monthly premiums for £250,000 of key person life cover, level over a 10-year term, insuring a healthy non-smoking male company director, based on the lowest guaranteed premium across our insurer panel. Quotes sourced on 1 October 2026. Indicative only: premiums depend on health, occupation, lifestyle and underwriting. Premiums are paid by the company.
Benefits overview
Key benefits of key person insurance
Protects the business against the financial loss of a key person's death or serious illness.
Financial stability
Ensures smooth business operations following the unexpected loss of a critical team member.
Profit protection
Safeguards revenue by mitigating the financial impact of losing a key individual.
Succession support
Provides the resources needed to recruit and train a replacement, minimising downtime and disruption.
Our customers
Trusted by business owners like you
“I set up shareholder protection policies for me and my business partners through Executive Life. They found us competitive quotes and the process was swift. I would highly recommend to other company directors.”
“Executive Life helped me find the best deal for my life insurance policy and also my income protection policy. It was very easy and the process took no time at all - I would highly recommend them!”
“Smooth process, easy to deal with and most importantly they saved me a lot of tax by switching my policy to one that could be paid for by the business.”
Questions
Frequently asked questions
Who counts as a key person?
A key person is anyone whose absence would cause the business a financial problem it couldn't easily absorb: the director who holds the client relationships, the salesperson your revenue depends on, or the technical specialist nobody else can replace. If you're a sole director, you are almost certainly a key person.
What can the payout be used for?
There's no prescription on how the payout has to be used. Most businesses use it to replace lost revenue, cover recruitment and training costs, repay loans and debt, or simply buy time to reassure clients and restructure the team.
Is key person insurance tax deductible?
It depends on the purpose of the policy. Where it protects against lost trading income, HMRC may treat the premiums as an allowable business expense; where that relief applies, the payout is generally treated as a trading receipt and subject to corporation tax. We'll help you structure it correctly from the outset.
Can I include critical illness cover?
Yes. A key person suffering a serious illness during their working life is significantly more likely than them dying, so you have the option to add critical illness cover alongside the life cover. You can also split the cover to keep the premium affordable.
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